New fund offer of ICICI Prudential FMCG ETF opens for subscription

ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential FMCG ETF. The New Fund Offer (NFO) closes on August 02, 2021. The offering aims to provide returns that closely correspond to the returns provided by its benchmark Nifty FMCG TRI Index in the same proportions, subject to tracking errors. The fund will be listed on BSE and NSE.

ICICI Prudential FMCG ETF provides investors with a choice to take exposure to multiple facets of the FMCG sector through this product.

Nimesh Shah, MD & CEO, ICICI Prudential AMC said, “Higher inclination towards branded products, rising purchasing power owing to higher disposable income, increased digitization and growing demand from rural areas, are expected to fuel the FMCG sector growth in India.”

FMCG is the 4th largest sector in the Indian Economy. India’s FMCG market was valued at USD 110 billion in 2020. In less than a decade, the market size of the sector had tripled. By 2025, the market is expected to grow to USD 220 billion.

The NIFTY FMCG Index is designed to reflect the behaviour and performance of FMCGs (Fast Moving Consumer Goods) which are non-durable, mass consumption products and available off the shelf. The NIFTY FMCG Index comprises 15 stocks from the FMCG sector listed on the National Stock Exchange (NSE). This index has outperformed Nifty 50 index in 8 out of the last 11 calendar years.

There are 13 thematic funds which focus on consumption theme and put together they manage Rs 8954 crore worth of assets. In the last one year these funds offered 47.15% returns in last one year ended July 21, 2021 compared to 49.18% returns offered by multicap funds. ICICI Prudential Bharat Consumption Fund is an actively managed fund dedicated to consumption theme. It has given 31% returns over last one year and has Rs 274 crore in assets under management.